European stocks slip lower; caution ahead of US payrolls

Investing.com – European stock markets slipped slightly lower Friday, with investors cautious ahead of the widely-watched monthly US jobs report, a key influence in deciding future Federal Reserve rate expectations.

At 03:10 ET (08:10 GMT), the in Germany dropped 0.1%, the in France slipped 0.1% and the in the U.K. fell 0.1%.

US payrolls in focus 

The European economic data slate is largely empty Friday, with just and industrial production figures for November to digest.

With this in mind, most eyes will be focused across the pond, with the monthly US employment report expected to show that the U.S. economy added 154,000 in December, while the is expected to hold steady at 4.2%.

Labor market data has been volatile in recent months amid disruptions from strikes and hurricanes, but numbers surrounding and have pointed to a reasonably healthy labor force.

With investors barely pricing in two rate cuts from the Federal Reserve this year the data is likely to remain consistent with a gradually slowing, but still solid labor market.

Back in Europe, the European Central Bank is seen more likely to ease monetary policy this year, with the eurozone economy seen in a much weaker state.

The ECB is widely expected to cut interest rates at least four times in 2025.

AI boosts TSMC’s sales

In corporate news, the tech sector will be in focus Friday after Taiwan Semiconductor Manufacturing (NYSE:), the world’s biggest contract chipmaker, reported a sharp increase in its sales for December, benefiting from robust demand from the fast-growing artificial intelligence industry.

Elsewhere, a report from the Italian financial newspaper Il Sole 24 Ore indicated that the Italian luxury group Prada (OTC:) is considering buying fashion group Versace from Capri Holdings (NYSE:).

Crude on course for weekly gains

Oil prices rose Friday, on track for a third straight week of gains, with demand receiving a boost from severe winter conditions in parts of the United States and Europe.

By 03:10 ET, the US crude futures (WTI) climbed 0.9% to $74.57 a barrel, while the contract rose 0.9% to $77.60 a barrel.

Over the three weeks ending Jan. 10, Brent has advanced 6% while WTI has jumped 7%.

Many parts of central and eastern United States are expected to experience below-average temperatures over the next few days, while many regions in Europe have also been hit by extreme cold, which is likely to boost demand for heating.